U.S. President Donald Trump said Thursday that he has “always had a great relationship” with Chinese President Xi Jinping and expressed optimism about “getting along with China.”
In a virtual interview at the World Economic Forum, Trump said the U.S. and China will “have a very good relationship,” according to a White House readout.
“All we want is fairness. We just want a level playing field,” Trump said. “But I like President Xi very much. I’ve always liked him.”
Earlier this week, Trump indicated plans to increase tariffs on Chinese goods by 10% as soon as February 1, with the White House also announcing an investigation into actions by China deemed harmful to U.S. commerce. During his campaign, Trump had previously suggested tariffs as high as 60% on Chinese imports.
Tariff Talk Sparks Market Gains
In a separate Fox News interview aired Thursday, Trump stated that while he would prefer not to impose tariffs, his threats have “tremendous power” over China.
The mainland’s blue-chip CSI 300 index responded positively to Trump’s remarks, climbing nearly 1%. Meanwhile, the offshore yuan strengthened by 0.67% to 7.2389 against the U.S. dollar, marking its highest level since late November, according to LSEG data. The onshore yuan also gained 0.61% to 7.2445.
Trump Highlights U.S.-China Imbalance
Meanwhile, addressing world leaders in Davos, Switzerland, Trump highlighted the U.S.-China trade imbalance, describing the relationship as “unfair” and pledging to address the “massive” U.S. trade deficit with China.
Between January and November 2024, the U.S. trade deficit with China was over $270 billion, a slight improvement from the over $280 billion deficit recorded in 2023. For context, the deficit stood at nearly $308 billion in 2020, the last full year of Trump’s previous tenure, according to U.S. government data.
Trump also expressed his desire to collaborate with China to help bring an end to the Russia-Ukraine war.
